TORONTO, August 15, 2022 /CNW/ – TAAL Distributed Information Technologies Inc. (CSE: TAAL) (FSE: 9SQ1) (OTC: TAALF) (“TAAL” or the “company“), a vertically integrated enterprise blockchain infrastructure and technology company, announces its financial results for the past three and six months June 30, 2022 (“Q2 2022“). These filings can be viewed on the Company’s SEDAR profile at www.sedar.com and on the company’s website at www.taal.com/investors. All financial information in this press release is presented in Canadian dollars unless otherwise noted.
Highlights of the second quarter of 2022
- Gross revenue from hashing operations was $7.3 milliona $0.7 million increase down $6.6 million in the second quarter of the previous year (“Q2 2021“). The higher block computing volume was largely offset by a significant drop in the market value of digital assets.
- Adjusted EBITDA was a loss of $4.2 million versus gain of $0.6 million in the second quarter of 2021.
- The cost of sales was $7.1 millioncompared to $2.7 million in Q1 2021 due to increase in block computing volume.
- loss before operating expenses $2.4 millioncompared to $5.0 million in the second quarter of 2021.
- Total operating costs $5.6 millionbefore stock-based compensation $6.6 million for an operating loss of $14.6 million.
- Advance payments for hashing equipment and hosting provider services were from the quarter $29.8 million.
- away June 30, 2022TAAL had approximately 56,000 BSV, 6,200 BCH and 4 BTC in the coin treasury.
- away June 30, 2022had TAAL $8.2 million cash, a $12.9 million long-term promissory note loan and $37.3 million of working capital.
Operational update and review of Q2 2022
On April 5, 2022TAAL announced that it has entered into a definitive stock purchase agreement (the “Agreement”) and has completed the sale of Chief Fuels Inc. (“Chief Fuels”) stock to an established professional real estate investment trust (the “Purchaser”) for an aggregate cash purchase price of $24 million. In Q2 2022 and as part of the agreement, TAAL began overseeing and coordinating the facility development project. Upon completion, this approximately 50MW, 60,000 square foot facility will be in New Brunswick will be a dedicated data center contributing blockchain computing power in support of Web 3.0 services and application partnerships that generate transactions through TAAL’s software services and interfaces.
During the quarter, the Company continued to monitor and assess the global situation regarding Russia, where the company owns and manages hashing operations. To date, operations have continued and the company has successfully partnered with new hosting providers within the company North America as part of its rebalancing plan that began in the first quarter. After this reporting period, the company announced partnerships with a subsidiary of Luxxfolio and Lake Parime to bring an additional 400 PH/s of computing power online. This additional processing power, combined with the rented processing power, creates redundancy and diversifies the infrastructure within a secure jurisdiction. Currently, TAAL’s activities are in Russia Comply with all international sanctions and continue, subject to an ongoing risk management assessment.
TAAL’s global product and services team continues to develop a blockchain infrastructure as a service solution that significantly reduces complexity for organizations looking to run Web 3.0 services and applications. TAAL’s 2022 product development roadmap includes the delivery of services such as TAAL API, Node-as-a-Service, TAAL Client, Token Studio, and UTXO Management Services, among others.
“Our transition to providing blockchain-as-a-service solutions continues to progress well as more companies develop or request Web 3.0 applications on the BSV blockchain,” he said Richard Baker, CHAIRMAN. “With a robust and secure infrastructure, we can accelerate our software and managed services business and enable the next era of global data trading. In the meantime, our core business and balance sheet continue to support this transition, and our revenue continues to grow with our hashing power.”
About TAAL Distributed Information Technologies Inc.
TAAL Distributed Information Technologies Inc. delivers value-added blockchain services and provides professional, highly scalable blockchain infrastructure and transaction platforms to help enterprises build solutions and applications on the BSV platform, as well as design, operate and manage distributed computing systems for enterprise users support . The BitcoinSV blockchain is the world’s largest public blockchain by all key utility metrics, data storage, daily transaction volume, scalability, and average block size.
For more information, please visit – www.taal.com/investors
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this press release constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. The words “will”, “intend”, “expect” and similar expressions are intended to identify forward-looking information, although not all forward-looking information will contain these identifying words. Specific forward-looking information contained in this press release includes, but is not limited to, statements regarding: the growth of TAAL’s treasury, including through BSV hashing activities; TAAL’s future computing power and capacity; development plans for the New Brunswick investment, geopolitical risks to TAAL’s operations and business and strategic plans. These statements are based on factors and assumptions regarding historical trends, current conditions and expected future developments. Because forward-looking information relates to future events and conditions, by its very nature it requires assumptions and involves inherent risks and uncertainties. TAAL cautions that while the assumptions are believed to be reasonable under the circumstances, these risks and uncertainties create the possibility that actual results may differ materially from expectations. Significant risk factors include future acceptance of Bitcoin SV and other digital assets and risks associated with information processing using these platforms, TAAL’s ability to leverage intellectual property into profitable income streams, and other risks detailed in TAAL’s Annual Information Form are dated from April 30, 2022under the heading “Risk Factors” and elsewhere in TAAL’s ongoing disclosure filings available on SEDAR at www.sedar.com. Given these risks, undue reliance should not be placed on the forward-looking information contained herein. Except as required by law, TAAL undertakes no obligation to update any forward-looking information to reflect new information, whether later or otherwise.
SOURCE Taal Distributed Information Technologies Inc.
For more information: Media and Investor Contacts: TAAL, Richard Baker, Chief Executive Officer, Office: (437) 826-8889, [email protected]; Sophic Capital, Sean Peasgood, President and Chief Executive Officer, Office: (437) 826-8889, [email protected]